Sustinvest, supports Goryeo Lead current management and advocates for enhanced governance structure transparency

As a voting rights advisory firm, Sustinvest expressed support for the current management team in the Korea Zinc dispute over operational rights and approved the bylaws amendment aimed at strengthening governance transparency. Sustinvest announced this stance ahead of Korea Zinc’s upcoming annual general meeting on March 24.

Specifically, Sustinvest indicated support for the current management candidates, including Cui Yunfan and Huang Denan, assessing them as suitable to lead the company’s stable growth. Conversely, it opposed the candidates from the MBK-Yongfeng consortium who challenged the operational rights. The reason cited was the specialized nature of the smelting industry, warning that unverified changes in management rights could introduce long-term uncertainties.

Sustinvest also supported shareholder proposals to improve governance transparency, including the introduction of executive management systems and changes to the board meeting procedures. These suggestions highlight the need for further strengthening checks and balances on management.

Partner Ryu Hojung of Sustinvest analyzed that, although the current management structure has caused some governance issues, an expanded deadlock in the board could negatively impact corporate value. Therefore, maintaining the existing management while more effectively balancing the board is a reasonable approach to protect shareholder value.

Measures that maintain the management structure while enhancing governance are expected to safeguard Korea Zinc’s long-term corporate value and reinforce shareholder trust.